Near-term gains unlikely for cement stocks due to high valuations

A recovery in prices in the past couple of months has provided strong support to cement stocks. The share prices of select cement companies have gained 12-34 per cent in 2019 so far, outpacing an 8 per cent rise in the Sensex.  However, concerns over realisations and high valuations could limit gains in the near term. Channel checks by some research firms indicate that the pan-Indian average cement prices have fallen 1-2 per cent month-on-month in June. According to a CLSA report, higher price discounts and rebates were observed in mid-May amid weaker demand. This could partly offse.....
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